Vivendi investors despatched shares surging by far more than a fifth right after the media large verified designs to listing Common Tunes as a €30bn (£26bn) organization by the finish of the year.
The French team, managed by the billionaire Bollore family members, is poised to cash in on a growing trader urge for food for songs investments by offloading 60pc of Common with an Amsterdam listing.
Affirmation of the program, which is most likely to earn shareholder acceptance at a March 29 assembly, despatched Vivendi shares up 20pc to €31.41 in Paris, valuing the organization at €37bn.
The organization designs to keep a 20pc holding in Common next the float right after advertising two 10pc stakes to Tencent, the Chinese tech and amusement conglomerate.
In a memo to employees on Saturday, Vivendi main government Arnaud de Puyfontaine and chairman Yannick Bollore stated the final decision to open Common Music’s share capital to Tencent experienced “verified its attractiveness with strategic traders”.
“UMG would be in a placement to consider edge of tremendously greater economical overall flexibility to go after its dynamic growth and its revolutionary role in the songs and amusement business, to the profit of artists and supporters everywhere,” they extra.
Vivendi owns 80pc of Common along with investments in French broadcaster Canal+, film and Tv set creation organization Studiocanal, advertising and marketing agency Havas, e book publisher Editis and Gamesloft, the mobile video games maker.